Telecom network API market to increase at a CAGR of 38%

Press Release   •   Jun 12, 2013 10:05 BST

The telecom network application program interfaces (API) market has been forecast to increase at a compound annual growth rate (CAGR) of 38% over the next five years, reaching a value of approximately $157 billion by the end of 2018.

Telecom Network APIs capitalise on existing network infrastructure to create a vast array of business opportunities for carriers worldwide. In essence, these APIs allow carriers to disseminate a wealth of internal information or resources to third parties.

This could entail everything from network QoS for video service delivery to Subscriber Data Management (SDM) for advertising and profiling, the goal being to enable third party developers to offer services in return for revenues.

Examples include network QoS for video services, subscriber data management for advertising and profiling, and many others

Third-party companies utilise carrier information to offer a wide variety of VAS applications in return for incremental revenue to the carrier.

Globally, telecom operators are recognising the value in APIs in generating new revenue, driving innovation, increasing competitiveness and attracting new customers and the ability of APIs to help capitalise on network infrastructures and create business opportunities worldwide has grasped the attention of many operators such as Orange, Telefonica and AT&T.

Today nearly 24 % of all web and 15 % of all mobile applications utilise APIs. This figure is expected to increase to over 68 % by the end of 2018, drive by growing investments from the vendor, developer and the carrier community.

In conjunction, the average volume of API transactions for tier-one telecom carriers will increase significantly over the next four years, eventually reaching an average 94 billion transactions per month.

In terms of regional revenue split, Asia-Pacific, North America and Western Europe will remain the largest market segments by the end of 2018, while Latin & Central America and Middle East & Africa will see the healthiest growth rates over the next five years.

For more information on the telecom network API market, see the latest research: Telecom Network API Market

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